Orchard Supply Hardware to close

Orchard Supply Hardware, which has locations in San Diego and San Marcos, will be closing by early next year, with parent company Lowe’s announcing Aug. 22 it wants to “focus on its core home improvement business.”

Lowe’s owns all 99 locations of OSH throughout California, Oregon and Florida. The San Marcos location opened just last year.

“While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy,” Lowe’s President/CEO Marvin Ellison said. “We will be providing outplacement services for impacted associates, and they will be given priority status if they choose to apply for other Lowe’s positions.”

It was unclear exactly how many workers will be affected by the closures.

OSH was founded in San Jose in 1931 as a co-op among ranchers to purchase farm supplies. But the company eventually morphed into a general hardware store. OSH was purchased in 1996 by Sears, but in 2012 Sears moved it into a separate business that went into bankruptcy.

Lowe’s purchased the chain out of bankruptcy.

Clearance sales were expected to begin at most OSH locations as early as Thursday.